How Do I Use My FSA Card on Amazon?

A Flexible Spending Account (FSA) is an employer-sponsored benefit allowing individuals to set aside pre-tax money for qualified medical and dental expenses. This arrangement reduces taxable income, offering a tax advantage for healthcare costs. FSA cards provide a convenient way to access these funds, functioning much like a debit card for immediate payment of eligible services and products.

Identifying Eligible Items on Amazon

Not all items available for purchase on Amazon qualify as FSA-eligible expenses. The Internal Revenue Service (IRS) defines qualified medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, including equipment, supplies, and diagnostic devices. Amazon categorizes products based on these IRS guidelines, often with the help of the Special Interest Group for Inventory Standards (SIGIS).

To identify eligible products, use the search bar for “FSA eligible” or “HSA eligible.” Many product pages display a badge near the price or title indicating eligibility. Common categories include over-the-counter medications, first aid supplies, certain medical devices, and feminine hygiene products. Consumers must verify an item’s eligibility before completing a purchase.

Using Your FSA Card for Purchases on Amazon

Once you have identified your FSA-eligible items, using your FSA card on Amazon is a straightforward process, similar to using any other debit or credit card. First, add your FSA card as a payment method within your Amazon account. Navigate to “Your Account,” then select “Your Payments,” and choose to add a new payment method. Look for the option to “Add an FSA or HSA card” and enter your card details.

During the checkout process for your eligible items, you will be prompted to select a payment method. Choose your newly added FSA card. Amazon’s system automatically identifies eligible expenses at checkout. If an order includes both eligible and non-eligible items, the system may decline the transaction, or you might need to use a different payment method for the non-eligible portion.

Managing Transactions and Troubleshooting

Your FSA card transaction might occasionally be declined. Common reasons for a declined payment include attempting to purchase non-eligible items, insufficient funds in your FSA account, or the card not being activated. A security hold or a discrepancy in the billing information can also cause a decline.

If a transaction is declined, first review your cart to ensure all items are FSA-eligible, and then verify your account balance. If the issue persists, contact your FSA administrator, who can provide specific details regarding the decline or any plan limitations.

The IRS requires that all FSA transactions be substantiated, meaning you must be able to prove that purchases were for eligible medical expenses. While many transactions are auto-substantiated by merchants like Amazon, it is important to retain receipts and detailed transaction records. You can access and save Amazon order details and receipts from your “Your Orders” history, which should include descriptions and amounts for each item, fulfilling IRS substantiation requirements.